Section 25395.25 Of Article 8.5. Cleanup Loans And Environmental Assistance To Neighborhoods From California Health And Safety Code >> Division 20. >> Chapter 6.8. >> Article 8.5.
25395.25
. Upon the approval of a loan pursuant to Section 25395.23,
the loan recipient shall do all of the following:
(a) Enter into an agreement with the department to repay the loan
over a period of not more than seven years. If the loan is to a local
government entity, or to a developer or prospective purchaser acting
together with a local government entity pursuant to an enforceable
agreement, the department may delay the beginning of the loan
repayment period.
(1) The agreement shall include those terms and conditions that
the department deems appropriate.
(2) (A) The agreement shall require that if the loan recipient
recovers from a responsible party any costs incurred in taking a
response action at the site that is the subject of the response
action pursuant to the agreement, the loan recipient shall use the
recovered money, except for reasonable costs and the fees incurred to
recover that money, first to satisfy the loan.
(B) Notwithstanding subparagraph (A), a loan recipient is not
required to first use the money recovered to repay the loan or grant
if the recipient can demonstrate, to the satisfaction of the
department, that the recovered money is necessary to, and is being
applied to, the total environmental remediation of the property, and
that the total of the recovered money and the loan amount does not
exceed the cost of remediation.
(b) (1) Enter into an agreement with the department or with the
regional board or state board pursuant to Section 25395.28 for the
oversight and approval of the response action at the site. This
agreement shall include any necessary conditions and assurances to
ensure that post-completion, ongoing operation and maintenance
activities, and any necessary institutional controls on future uses
of the property, are complied with. This agreement shall be provided
to the department before the department may release any loan funds to
the loan recipient.
(2) Notwithstanding any requirement of this division regarding
cost recovery or reimbursement for oversight costs, a loan recipient
is not liable for paying the department's costs pursuant to this
article or the regional board's or state board's costs pursuant to
Section 25395.28 associated with the oversight of the response action
at the site subject to the agreement, if the department determines
there are sufficient funds in the account to reimburse the department'
s costs pursuant to this article or the regional board's or state
board's costs pursuant to Section 25395.28 for that oversight. If the
department determines that the account has insufficient funds to pay
for the oversight costs associated with the oversight of the
response action at the site subject to the agreement, the loan
recipient shall pay the department's costs pursuant to this article
or the regional board's or state board's costs pursuant to Section
25395.28 for the amount of those costs.
(c) (1) Except as provided in paragraph (2), obtain secured
creditor insurance, as defined in subdivision (k) of Section
25395.40, from the insurance company selected by the secretary
pursuant to subdivision (b) of Section 25395.41, or comparable
insurance from any insurance company with an A.M. Best Financial
Strength Rating of A+ or better and an A.M. Best Financial Size
Category of FSC X or larger that is authorized to offer environmental
insurance in California. This insurance shall be obtained before the
department may release any loan funds to the loan recipient.
(2) The secretary may waive the requirement of paragraph (1) to
obtain insurance or any specific insurance coverage if either of the
following apply:
(A) No money is available for the environmental insurance
subsidies authorized pursuant to Section 25395.42.
(B) The secretary determines that the scope of the response action
is limited and the cost of the premiums of the prenegotiated package
of environmental insurance products equals or exceeds the estimated
response action costs, or is otherwise not commercially feasible.